Politics: Business Tax Cut

Recently, House Republicans voted in favor of a $287 billion tax cut for businesses. It is reported that there was no mention of a plan to offset or pay for the tax cut. The vote, in favor to opposed, was 258-160. It is actually one of the largest “unpaid measures” passed by the House in the past few years. GOP, or Republican, lawmakers say that this tax cut will help the economy. Others say it is an irresponsible move. Specifically, the bill would make “bonus depreciation” permanent. Bonus depreciation is a huge benefit for businesses. It allows businesses to deduct 50% of the value of new equipment or assets, in the same year that they are purchased. The “bonus” part comes from the fact that it is a much larger and faster tax benefit than the traditional depreciation offered to businesses. GOP supporters of the bill have gotten a bit of heat for the fact that they have been reluctant to pass other bills that are much less expensive, such as President Obama’s request for $3.7 billion to address children crossing the border and a request for $11 billion to keep highway projects sustained for under a year.